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COMMONWEALTHAct
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s 334

Contracting out etc

In force
Volume 1Chapters 1 to 6 (sections 1 to 322)
Chapter 5Administration
Part 5-1Registers relating to credit activities
Division 1Introduction

334 Contracting out etc

(1)

A provision of a contract or other instrument by which a person seeks to avoid or modify the effect of this Act (other than the National Credit Code) is void.

Note:

A similar rule applies for the purposes of the National Credit Code (see section 191 of that Code).

(2)

A provision of a contract or other instrument by which a person seeks to have:

(a)

a debtor indemnify a credit provider; or

(b)

a mortgagor indemnify a mortgagee; or

(c)

a guarantor indemnify a beneficiary of a guarantee; or

(d)

a lessee indemnify a lessor;

for any loss or liability arising under this Act (other than the National Credit Code) is void.

Note:

A similar rule applies for the purposes of the National Credit Code (see section 191 of that Code).

(3)

A person commits an offence if:

(a)

the person is a credit provider, mortgagee, beneficiary of a guarantee or lessor; and

(b)

the person is a party to a contract or other instrument; and

(c)

the contract or other instrument is void under subsection (1) or (2).

Criminal penalty: 100 penalty units.

(4)

Subsection (3) is an offence of strict liability:

Note:

For strict liability, see section 6.1 of the Criminal Code.

(5)

Subsection (2) does not affect the operation of subsection 60(2) of the National Credit Code.

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